Who Needs Flood Insurance?

August 1, 2019

A very common question when first starting to talk about flood insurance is Who needs flood Insurance? All owners of insurance property should have flood insurance, this video will explain why.

Why Do I Need Flood Insurance?

According to FEMA, floods are the most common natural disasters in the US – in the past five years, all 50 states have experienced floods. Despite this, many Americans are not adequately informed about the benefits of having flood insurance & the heavy financial ruin that can come with floods:

On average, floods cause around $6 billion in property damage: just an inch of water can cause up to $25,000 in damages in most homes or apartments. A flood does not have to be catastrophic to result in high out-of-pocket costs: 20% of claims occur in moderate to low-risk areas.

Is Flood Insurance Mandatory?

It depends. Some homes are in mandatory flood zones. However, all properties are at risk – more than 20% of claims come from properties outside of the mandatory zone. Even if you live outside of the mandatory areas, the Federal Government has a low-cost option that subsidizes your policy and can potentially start as low as $15 per month. You can check whether you are in a mandatory flood zone on our risk tool.

What Else Do I Need to Know?

  • Homeowners and renters insurance does not typically cover flood damage
  • During a 30-year mortgage, you are 27 times more likely to experience a flood than a fire
  • Most properties are eligible for a lower-cost Preferred Risk Policy